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What do you think of reverse mortgage loans?

I have always dreamt of buying my own home and stopping paying a rent. Time is passing and I am not able yet to do it. after a search, I found out that there is an opportunity for me, a financial solution that is reverse mortgage, probably the only possibility for many young people who cannot afford paying other types of loans. Yet, I would like to know the other side of the moon. What do you think about taking out a reverse mortgage? Thank you.

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Answers

AnswerWidget

I think that you should meet a mortgage advisor who could give you all the necessary information to make the best choice for you. This is what I've done recently since I'm going to buy home too.

Unfortunately, a reverse mortgage has a lot of disadvantages, although it looks like quite attractive as financial solution for those who cannot afford other types of mortgage. For examples, taxes, fees, interest rates and homeowners' insurance can result very expensive and you must be sure that you will be able to pay them. Therefore, if you have no income at all, I wouldn’t suggest you to take out a reverse mortgage.

Definitely, a reverse mortgage (or home equity loan) is the last resort to consider but still the only possibility for many of us, since it allows to turn the equity in your home into hard cash. Anyway, bear in mind some points:

if you have children, consider that then you probably wont' be able to leave them your home;

you will be asked to buy a home-owner’s insurance, thus you will pay premiums;

remember to include your partner as co-borrower in the mortgage contract you take out, or after your death (that I hope will come in 100 years!) she won't be able to keep on living in your home.

You can get more information watching this video. And anyway, I recommend you to talk with a mortgage advisor. There are many other home loan possibilities that you probably don't know and that might solve out your problem with less risk for you.

I think that you should meet a mortgage advisor who could give you all the necessary information to make the best choice for you. This is what I've done recently since I'm going to buy home too.

Unfortunately, a reverse mortgage has a lot of disadvantages, although it looks like quite attractive as financial solution for those who cannot afford other types of mortgage. For examples, taxes, fees, interest rates and homeowners' insurance can result very expensive and you must be sure that you will be able to pay them. Therefore, if you have no income at all, I wouldn’t suggest you to take out a reverse mortgage.

Definitely, a reverse mortgage (or home equity loan) is the last resort to consider but still the only possibility for many of us, since it allows to turn the equity in your home into hard cash. Anyway, bear in mind some points:

if you have children, consider that then you probably wont' be able to leave them your home;

you will be asked to buy a home-owner’s insurance, thus you will pay premiums;

remember to include your partner as co-borrower in the mortgage contract you take out, or after your death (that I hope will come in 100 years!) she won't be able to keep on living in your home.

You can get more information watching this video. And anyway, I recommend you to talk with a mortgage advisor. There are many other home loan possibilities that you probably don't know and that might solve out your problem with less risk for you.